Every year property taxpayers are obliged to file a return for property tax. The above forms are submitted to the mayor/mayor/commune head (wójt) with jurisdiction over the location of the objects subject to taxation (i.e., land, buildings and structures). Property tax payments must be made until the tax obligation expires. Legal entities pay tax for each month in installments, by the 15th of each month. However, the amount of tax under 100 PLN is paid in a single payment on the due date of the first installment.
Objects subject to property tax are:
Property tax payers are:
The basis for property taxation is:
Property tax forms include:
Tax obligation arises with the first day of the next month following the acquisition of the property or the commencement of its use. However, for newly constructed buildings or structures, it arises with the first day of January of the year following the year in which construction was completed. It can also be the moment when the use of a structure, a building began before the completion of the final finish.
Company X acquired the land on August 15, 2022 (the date of signing the deed)- the property tax obligation arises on September 1, 2022.
In addition, it is the Company’s responsibility to file a property tax return within 14 days of acquiring the land.
The construction of Company X’s villa building was completed on March 20, 2021 – tax obligation arose on January 1, 2022.
As the end of the year approaches, the Ministry of Finance has made public what the specific rates of local taxes and fees will be in 2023. The rates set by the government change annually in accordance with the inflation rate, on the basis of which they are calculated.
In a notice dated August 1, 2022 [M.P. 2022, item 731], the Ministry of Finance published the indexed rates. Each municipal council has the right to determine independently by resolution what value of the tribute will apply – up to an upper limit.
2022 was a difficult year in terms of the highest inflation reading in years, and as a result, in 2023 you need to be ready for sizable tax increases. This includes property tax compared to last year.
For example, we will pay an average of PLN 0.13 more for land connected with business activities, regardless of the way it is classified in the land and buildings register. And for buildings connected with the conduct of business activities and for residential buildings or their parts occupied for business activities, the average is PLN 3.04 more than last year.
Applicable land tax rates for 2023:
Applicable tax rates on buildings or parts thereof for 2023:
Tax returns often cause taxpayers many problems. The same is true for property tax- manual filing, the appropriate headings and amounts make a high chance of errors. An easier way to pay property tax has become the Przyjazne Deklaracje (Friendly Tax Returns)portal, a platform that provides an easy way to fill out the appropriate forms, both for individuals and legal entities, algorithms select tax rates and calculate the tax. In addition, answers to the most common questions can be found there.
Author: Izabela Chudzik, Accountant at MDDP Outsourcing.
Announcement of the Minister of Finance dated July 28, 2022 on upper limits of the amount rates of local taxes and fees for 2023